What is the difference between actual and nominal damages?

Actual damages and nominal damages are both types of damages in personal injury law. Actual damages are the monetary awards given to compensate a plaintiff for the actual losses sustained in an accident. This could include current medical bills, lost wages from time taken off work, or other costs associated with the injury. These damages are intended to make the injured party “whole” again financially. Nominal damages are a set amount given to plaintiffs to acknowledge that their legal rights were violated, even if the plaintiff did not incur actual economic loss. This could be done to give recognition to someone who went through the injury but faced no economic burden. In Massachusetts, the amount for nominal damages can be as much as $25 dollars. Nominal damages also serve to deter future wrongdoing by punishing the defendant even though the plaintiff may not have suffered any actual economic losses.

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What is the difference between actual and nominal damages?

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